South Korea’s Financial Supervisory Service (FSS) has launched an investigation into the crypto exchange Coinone following an extreme price surge and subsequent crash of the Movement (MOVE) token. The probe raises concerns about potential unfair trading practices and the processes behind the token’s listing.
MOVE Token’s Unprecedented Price Swing
The Movement token, built on the Movement blockchain and utilizing the Move programming language (initially developed for Facebook’s Diem project), experienced an unprecedented price spike on Dec. 9. The token’s value skyrocketed from 215.3 won (approximately $0.15) to 998,500 won ($697) within minutes on Coinone, only to plummet to 5,300 won shortly after.
This dramatic fluctuation has led the FSS to investigate whether Coinone adhered to proper procedures and whether any unusual trading activity occurred during this event.
Concerns Over Listing and Trading Practices
The FSS is also reviewing how Coinone managed to list the MOVE token ahead of other major South Korean exchanges like Upbit and Bithumb. Questions have been raised regarding the listing process and whether it complied with regulatory standards.
MOVE Token’s Background
The Movement Network Foundation had announced the token generation event for MOVE on Dec. 9, coinciding with its launch on Coinone. However, the rapid price surge and subsequent crash have sparked concerns over market manipulation and the transparency of Coinone’s trading platform.
Implications for South Korea’s Crypto Industry
This investigation underscores the increased scrutiny facing crypto exchanges in South Korea as regulators aim to ensure fair trading practices and protect investors. The outcome of this probe could have significant implications for the country’s crypto landscape, particularly regarding listing procedures and market integrity.
